Going Green, Cutting Taxes, Growing the Economy

We can do it all.

YES WE CAN.

It's time for a solutions. How can we get this economy moving forward again. The first thing is that President Obama needs to stop threatening those who have the ability to create jobs with more taxes. I have already discussed in a prior post how his proposed tax increases on rich people will yield less tax revenue because they will simply not participate in the economy; or structure their transactions is such a way that they are not taxable or not visible.

Step one for Obama is to gain the support of the rich with a tax friendly policy. Try asking them what they would like to contribute. He will probably get more tax revenues with that approach.

Step two for Obama is to look at how Bush Jr got out of the last recession. From what I recall he offered immediate deductions for capital purchases. It worked.

Step three for Obama is to take Bush Jr's plan green. Offer a full deduction in the first year for any environmentally friendly equipment purchased by businesses. In the case of vehicles, 100% deduction in the first year for 100% alternate fuel trucks, buses and cars. Hybrid vehicles will be deducted over two years.

This policy can be extended to individuals as well to motivate them to dump their cars for new alternate fuel ones. It does not even matter if 100% alternate fuel vehicles don't exist yet. Manufacturers will scramble to make them. That effort will move the economy alone. If they can't figure it out, their loss.

Home owners should get full tax deductions for installing solar panels and wind-turbines to power water heaters, lights and battery reserves. Led Bulbs bulbs should also be deductible.

Such a tax policy would have the effect of seriously effecting our energy policy and stimulating the economy at the same time. It would also win over the rich people that President Obama has been alienating and get them to participate in this economy.


What I am suggesting here is tax deductions for Green equipment and vehicles yet to be designed. This is moving ahead of the curve. I am less interested in giving deductions for the hybrids that we have have now, but more interested in offering deductions for the 100% alternate fuel machines that can be produced six months from now and then twelve months from then. Money can be paid in advance and deductions paid in the year paid. Employers will start hiring to fill the backlog of orders created.

The 900 billion stimulus is a one time shot in arm. It is not going to generate new jobs. Whoever can get their hands on that money is going to hoard it. My plan is designed to make real changes and create productive jobs that will mean something. Paying one crew to dig a ditch and then another crew to fill that ditch, creates jobs but is not sustainable nor productive growth.